International Banking Operations:
June 17, 1996
Circular No. 10856

Regulation K Amendment Regarding Interstate
Banking Operations of Foreign Banking Organizations

To All Depository Institutions, U.S. Branches, Agencies, and Representative Offices of Foreign Banks, and Bank Holding Companies in the Second Federal Reserve District:

The following statement was issued by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has announced a final rule amending provisions of Regulation K regarding interstate banking operations of foreign banking organizations.

The final rule is effective immediately.

The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 removed geographic restrictions on interstate banking by foreign banks effective September 29, 1995, and requires certain foreign banks without U.S. deposit-taking offices to select a home state for the first time.

The final rule requires these foreign banks to select a home state by June 30, 1996, and removes outdated restrictions on certain mergers by U.S. bank subsidiaries of foreign banks outside the home state of a foreign bank.

Obsolete and superseded provisions of Regulation K concerning home state selection also are deleted.

The text of the amendment to Regulation K, as published in the Federal Register of May 15. Additional single copies may be obtained from the Circulars Division of this Bank.

Questions on this matter may be directed to Joseph F. Bell, Staff Director, Foreign Bank Report Division.